Yes there is a floor. The manufacture cost for the refinery; transportation; EPA charges; Station cost; are just a few. Oil could be free and these cost will stay the same. With high price oil the oil price is a bigger percentage so it effects the price of the gas and diesel more easily.
But with that said the price of oil does not set the pump price. The price at the station across the street does set the pump price. Also margins at most big stations are pretty good. It is because they are the jobber and retailer. A mom and pop store could never keep up with the big boys because of this. The big stores can sell gasoline at the pump for less than the mom and pop stores pays for it and still make money. We use to (may still have) laws in Louisiana that forced the big boys to sell gasoline with at least a xx markup to try and protect small stores from this.
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Today's Featured Article - Hydraulics - Cylinder Anatomy - by Curtis von Fange. Let’s make one more addition to our series on hydraulics. I’ve noticed a few questions in the comment section that could pertain to hydraulic cylinders so I thought we could take a short look at this real workhorse of the circuit. Cylinders are the reason for the hydraulic circuit. They take the fluid power delivered from the pump and magically change it into mechanical power. There are many types of cylinders that one might run across on a farm scenario. Each one could take a chapter in
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